welcome to newsday, reporting live from singapore, i'm karishma vaswani. the headlines. the race to recover the wreckage of an american surveillance drone downed over the black sea. financial regulators in switzerland step in after a share crash at credit suisse causes jitters in european markets authorities in pakistan pause their attempts to arrest the opposition leader, imran khan, after clashes between police and his supporters.

welcome to bbc news. our top story today: the us defense secretary says he had a rare phone call with his russian counterpart — in the aftermath of a collision between a russian fighterjet and a us drone. the race is now on to recover the wreckage of the drone which is thought to be twelve hundred metres deep in the black sea. russia has also said it will try to find the wreckage. meanwhile, america's top general said the whole incident was a result of russia's increasingly aggressive behaviour in the area. us defense secretary lloyd austin gave this update earlier. as i've said repeatedly, it's important that great powers be models of transparency and communication. and the united states will continue to fly into operate where ever international law allows. and it is incumbent upon russia to operate its military

aircraft in a safe and professional manner. ukraine's foreign told the bbc that incidents such as this are inevitable until russia leaves crimea. our diplomatic correspondent, james landale now reports from kyiv. this is the kind of unmanned aircraft that crashed. an mq nine reaper patrolling the skies. patrolling the skies over the black sea. gathering information over the war below flown will remotely. this is the type of russian warplane the us claims struck the drone — an su 27 fighterjet which encountered the aircraft yesterday. us commanders said the russian planes flew in front of the drones several times and dumped fuel over it. after which, the drone�*s propeller was struck, spinning it out of control. but russia denies

causing the crash. sing the drum was approaching russian territory to do with the spokesman referred to as sharp manoeuvres. translation: | want to - underline russian fighterjets did not use the onboard weapons, did not come into contact with the unmanned aerial vehicle and returned safely to base. ukraine's foreign minister played down the risk of an escalating cofrontation between two of the world's nuclear superpowers. as long as russia controls crimea, this kind of incident will be inevitable, and the black sea will not be a safe place. the only way to prevent such incidents is actually to kick russia out of crimea. do you fear escalation? no, i think it'sjust routine incidents. it's happening from time to time. a us spokesman said steps are being taken to protect

the wreckage, but accepted it might be too deep underwater. russian officials expressed confidence they could discover what was left. financial regulators in switzerland say they are ready to provide support for the troubled banking giant, credit suisse, if needed. shares in the bank have plunged twenty four per cent, sparking a wider sell—off in european stocks, which closed down more than three per cent. it comes days after the failure of silicon valley bank in the us. our business correspondent theo leggett says credit suisse is no stranger to controversy. what you have to remember is that credit suisse is no stranger to travel. this bank was $1 billion last year and it has gone from scandal to scandal over the past few years that of damaged his reputation and finances. so, it is very much seen as one of the week men of europe in the banking sector that matters because the entire banking sector is coming under scrutiny at the moment. the collapse of silicon valley and signature bank in the

united states came as a big shock and is focused attention on other banks to see whether the weaknesses that occurred there might occur elsewhere. now, with all the scrutiny upon it, credit suisse has not been coming out well and has admitted yesterday that were material weaknesses over financial reporting. not good. today, it's financial reporting. not good. today, its biggest shareholder was preparing to no longer backed the bank any further. surrounding credit suisse, that is why investors are running scared and just ask why other shares of falling as well because some of the weaknesses that existed in silicon valley and signature bank may exist elsewhere and also if one bank were to go under, if there was a major bank collapsing in europe, what would happen? with a be a domino effect? with other banks then follow and thatis other banks then follow and that is the real fear at the moment. people are wondering if the bank collapses, what happens next was? the result,

investors are running scared and shares are down across the board. we can talk now to fariborz moshirian — professor of finance and banking at the university of new south wales and the director at the institute for global finance. great to get the programme. i want to look specifically at credit suisse and i do not know how much my colleague's reporter able to hear but what you think is led precisely to the concerns that we are seeing there? i the concerns that we are seeing there? ~ , ., , there? i think your reporter is well covered _ there? i think your reporter is well covered the _ there? i think your reporter is well covered the issue - there? i think your reporter is well covered the issue here i there? i think your reporter is well covered the issue here isj well covered the issue here is credit suisse was always on their watch, credit suisse was always on theirwatch, if credit suisse was always on their watch, if you like for a number of years and for different reasons. and also last year, they made significant losses. and obviously, there are signals for liquidity and international bank is not willing to

contribute more and the bank is looking for more sources of liquidity. and of course, people have been very nervous over what is happening with silicon valley bank and other regional banks in the united states and so, the reason of sensitivity in the market and everyone is on the lookout as to which other bank would have some island liquidity issues and other business models that are not going to be discernible in the high interest rate environment. i5 in the high interest rate environment. , , ., environment. is impossible to say whether — environment. is impossible to say whether this _ environment. is impossible to say whether this situation - environment. is impossible to say whether this situation can | say whether this situation can be contained or are we looking at a domino effect where as you point out, because that nervous sentiment, people consistently sell shares of banks that they're worried about that leads to more nervousness on markets. i leads to more nervousness on markets. ~' .. ., markets. i think the fact that the credit — markets. i think the fact that the credit suisse _ markets. i think the fact that the credit suisse bank- markets. i think the fact that the credit suisse bank has i the credit suisse bank has shown that they are there to support credit suisse is a

significant step and it comes to on the market to some extent. howeverthe to on the market to some extent. however the trust is a big issue in banking in other words, there are issues of interconnectedness, their issues of what other bank in europe will be exposed to credit suisse and that is when the european banks in general, including euros on banks come into question and asian banks. they think the market is very nervous of risk of contagion and that is the issue that we really need to wait for another 24 really need to wait for another 2a hours to see what emerges. what you think happens next in terms of more regulations of the banking sector? i know that's been one of the factors as been talked about is the reason for why we have seen the collapses and the banking sector recently. in

collapses and the banking sector recently.— sector recently. in other words. _ sector recently. in other words. i _ sector recently. in other words, ithink— sector recently. in other words, i think recent - sector recently. in other - words, i think recent events in the us and in switzerland is making regulators asked to rethink about the stability of banking systems which are set “p banking systems which are set up after the group of financial crisis and more capitalisations of the systemic the important financial institutions and other parts of the world and still, it is possibly very serious discussion for this thatis serious discussion for this that is happening which regards to business models and high interest rate environment and high inflation environment as well as the interconnectivity of banks and global financial crisis because the banking system has become more interconnected and so, there are some recalibration behind what is happening and we should not be too alarmist but very alert that people in markets and regulators, they are all

carefully considering potential systemic risks and in the immediate times or a couple of weeks or months to come. that immediate times or a couple of weeks or months to come. at the university of _ weeks or months to come. at the university of new _ weeks or months to come. at the university of new south - weeks or months to come. at the university of new south wales, i university of new south wales, discrete control in the programme. the british chancellor, jeremy hunt, has pledged to "build for the future" in his first budget — promising it will deliver economic growth. he told mps that the country's financial forecast has improved, and the economy will avoid going into recession. he also said inflation was now predicted to fall to just under 3 per cent by the end of the year. the opposition labour party accused the conservatives of �*sticking plaster politics'. here's our political editor chris mason. when will things actually get better, chancellor? there have been rather a few chancellors of late — here is the current one, jeremy hunt, the fourth in a year, and a big personal moment. at one end of downing street, his wife and children.

at the other end, out on whitehall and beyond, this again. striking workers, schools closed, demonstrations. do you have money to end the strikes, chancellor? the answers, or lack of them, would come down the road in parliament. the overall message, things are tough but improving. i report today on a british economy which is proving the doubters wrong. the uk will not now enter a technical recession this year. soaring energy bills have been a massive factor in crippling family finances in the last year. the government's help to ease the burden is to be extended until the summer. this measure will save the average family a further £160 on top of the energy support measures already announced. here is another choice the chancellor has made,

maintaining the 5p a litre cut in fuel duty and not putting it up in line with rising prices. that saves the average driver £100 next year and around £200 since the 5p cut was introduced. the headline rate of corporation tax is going up, not popular among all his mps. businesses will pay less, though, if they put money into their future growth. that means that every single pound a company invests in it equipment, plant or machinery can be deducted in full and immediately from taxable profits. a big part of this budget is getting more people into work. there are measures to help those with disabilities and 50— and 60—somethings tempted to retire. now they will be able to save more in a pension, tax—free every year and the chancellor will... but it will not be fully up and running

for two and a half years. in the round, ministers want this to be seen as a steady as you go budget. the declinists are wrong and the optimists are right. we stick to the plan because the plan is working and i commend this statement to the house. in response the opposition parties were scathing. managed decline, britain going backwards, the sick man of europe once again. that's the britain they have created and they should look it in the eye. a uk whose performance i deteriorated after the brexit referendum both in absolute and relative terms. - and a country, the only one in the g7, where i the economy has not returned to its pre—pandemic level. - what do you say to people who say this is a budget for the rich, allowing people who are already well off, already earn a lot, save more into their pensions? of course we want to help older people who want to stay in work and by definition they will generally be on higher salaries, but nearly five times more help is going to young parents.

your official forecasters say that the freezing of the income tax thresholds over six years is the equivalent to putting 4p on income tax. you're clobbering people. i thought conservatives were meant to cut taxes. conservatives cut taxes when they can. today, i cut corporation tax by £9 billion, but remember this... and raised the headline rate. yes, but, the pandemic, we spent £400 billion to support businesses and families. how much of today is still about shovelling up the mess of your conservative predecessors? it's not. none of it? no. the financial statistics about the country, they have completely recovered from that. today is about a long—term growth plan. the blunt political truth is conservative opinion poll ratings have not recovered. he, they, have a lot of persuading to do. chris mason, bbc news, at westminster.

you're watching newsday on the bbc. still to come on the programme. the afghan orchestra trying to keep traditional music alive after the taliban takeover. today, we have closed the book on apartheid and that chapter. more than 3,000 subway passengers were affected. nausea, bleeding, headaches and a dimming of vision, all of this caused by an apparently organised attack. the trophy itself was on the pedestal in the middle of the cabinet here. now, this was an international trophy, and we understand now that the search for it has become an international search.

above all, this was a triumph for the christian democrats. of the west, offering reunification as - quickly as possible. and that's what i the voters wanted. this is newsday on the bbc. our main story: the race is on to recover the wreckage of an american surveillance drone downed over the black sea. let's get more on that story, former us marine chief of staff in europe, brendan kearney joined us on newsday earlier

and gave us his thoughts on how the incident unfolded. it isa it is a sad situation but it's not unusual in the world of intelligence gathering. now, the 're intelligence gathering. now, they're both _ intelligence gathering. now, they're both trying _ intelligence gathering. now, they're both trying to - intelligence gathering. now, | they're both trying to capture remnants of the drone and how concerned is the us going to be if this doesn't happen russian hans? i if this doesn't happen russian hans? .�* if this doesn't happen russian hans? ., �* ~' �* , hans? i don't think there's auoin hans? i don't think there's going to — hans? i don't think there's going to be _ hans? i don't think there's going to be much - hans? i don't think there's going to be much that - hans? i don't think there's going to be much that will| hans? i don't think there's i going to be much that will be worthwhile other than the embarrassment of having sophisticated drone ending up in the water and the russians were covering it. the electric surveillance package is we all know from owning cell phones and computers is what you get those wet in particular with saltwater affecting them, they are going to be virtually useless other than being on somebody�*s desk for a media eventin somebody�*s desk for a media event in the aircraft itself, we have a couple dozen of those shot down over the years since they were first introduced and

so, the russians, the chinese, our adversaries around the world of ours seen this aircraft, bits and pieces of it before. i don't think they're going to get an intelligence windfall out of it, i may be wrong but it will be embarrassing if the russians to get to it first. d0 embarrassing if the russians to get to it first-— get to it first. do you think more caution _ get to it first. do you think more caution as _ get to it first. do you think more caution as well- get to it first. do you thinkj more caution as well going forward, do you see that coming from them being more cautious of performing these operations in the future? i of performing these operations in the future?— in the future? i don't think the us in the future? i don't think the us will— in the future? i don't think the us will make - in the future? i don't think the us will make an - in the future? i don't think the us will make an effort| in the future? i don't think. the us will make an effort to do so in terms of trying to be more forthcoming. the aeroplane was operating in international airspace, at least that's what the united states is said and probably willing to stand by that. we've had incidents in the black sea before that have really been navigation issues between the old soviet navy,

the russian navy in the us navy. the russians treated as their own lake. but i've also been aerial incidents that have occurred over the years and most recently in asia, we've had when over in the vicinity in the early to thousands where a chinese jet because the downing of a us aircraft where they had to make an emergency landing on the island and unfortunately, the chinese pilot died as a result of his own incompetence. so, these things happen and as long is there an international airspace on the high seas, i think were going to continue to see these operations ongoing. the russians due to the united states on a regular basis and these are not unusual. north korea has fired what appers to be an inter—continental ballistic missile. the launch has been confirmed by south korea and japan.

the defence ministry in tokyo said the missile flew for about 70 minutes, covering 1,000 kilometres. north korea has conducted multiple missile launches this week amid ongoing joint south korea—u.s. military drills that pyongyang condemns as hostile actions. a court in pakistan has ordered police to suspend an operation to arrest the opposition leader, imran khan, until thursday morning. it followed pitched battles between security forces and supporters of mr khan outside his residence in the city of lahore. the confrontation began on tuesday when police tried to arrest the former prime ministerforfailing to appear in court over corruption charges. mr khan says the charges are politically motivated. 0ur correspondent caroline davies sent this report from mr khan's residence: they have to slip the stretch which is imran khan's home. the police might�*ve left but the remnants of might happened here

have not. you can see the charred remains of burnt chairs, you can see them on the floor. and you can see idle witnesses there were rocks and sticks used the imran khan party supporters. and we know the police used water cannons and tear gas and it is that tear gas leak and still since in the air and feel it in the back of your eyes and in the back of your eyes and in the back of your throat. the police arrived yesterday afternoon, saying they intended to arrest mr imran khan and they say because he did not turn up to multiple court appearances. imran khan and said he did not appear because of security concerns and it his own safety turning up to those court orders. we saw from the minister of information that the police operation has not been temporarily suspended at thatis been temporarily suspended at that is because the pakistan super leak which is a cricket tournament that is ongoing, there is a semifinal happening tonight at the moment, this sort of disruption is in the

city which is at a standstill. support is here have not suggested that they are going to go anywhere. there've been serious clashes between italian police and german football fans in naples this evening — after eintracht frankfurt supporters arrived in the italian city despite being banned from attending tonight's champions league match against napoli. a police car was set on fire by a group of hundreds of supporters and smoke bombs and flares thrown at officers, who responded with tear gas. local media said eintracht fans were also attacked by some napoli fans the match was played without incident inside the ground with napoli winning 3—0 to seal progression to the quarter—finals. since the taliban takeover in august 2021, playing and listening to music — in public — in afghanistan has been banned. the taliban say it is "un—islamic" and they locked the doors of the afghanistan national institute of music in kabul when they returned to power in 2021, forcing the students of the music

school to flee the country. but now, this determined group of young musicians are back on the international stage fighting to keep afghan music alive. shekiba habib reports. these are the students of afghanistan's most prestigious music institute, after fleeing from their country. this is the start of their 2023 tour of europe. translation: i never imagined the taliban could take over - and ban music within a day. tanslation: when the j taliban came, i was sad because i wasn't able to continue studying. i was a prisoner at home. back home, they had freedom to perform in public and status as professionals. but when the taliban returned,

everything regressed. after breaking all their instruments, the taliban locked the doors to their music school. years of dedication and passion were destroyed in seconds. but the school's former students are far from defeated. translation: we won't let their actions go unnoticed. i we will play our music even louder. these musicians flourished in afghanistan before the taliban cut short their career. they might have lost their stage, their music school and their musical instruments, but what's remaining is their art and their resilience. now living as refugees in portugal, the students have revived their orchestra and their mission. how do you feel before going to the stage? excited. which piece do you like the most? the one that's

about afghanistan? it's good. the first concert of the tour and it's a sell—out show. applause translation: the taliban wanted young girls - and boys to bejust like them — uneducated and without progress. without a future. translation: when the taliban are gone, i will go _ to afghanistan to teach music to girls and boys.

that's all for now — stay with bbc world news. hello. it's quite mild out there and that's how it's going to stay over the next few days. but with that comes a lot of cloud and occasional outbreaks of rain. and that's what we've got in the headline for thursday. so here's the satellite picture and you can see this thick cloud streaming in from a south—westerly direction. you can see the weather fronts here, a broad area of rain—bearing cloud and that mild current of air all the way from the azores, wrapping around the low pressure, and we've got those weather fronts pushing through. so the forecast through the early hours shows that heavier rain across more northern parts of the country. rain, dribs and drabs, elsewhere and very mild in the morning, about 10 in the south and also in northern ireland. still a little on the chilly side in northern scotland, around two degrees, where,

earlier on, we had some snow across the highlands. so the forecast for thursday shows that heavier rain making its journey further north. there will be some rain also around other western parts of the country, but also sunny spells developing in northern ireland, but also heavy showers, possibly some thunderstorms, too. one or two glimmers of brightness possible also in east anglia and the south—east. mild, up to 15 degrees in some spots, but still chilly in stornoway, 7 degrees, and about 5 degrees in the northern isles. now, that low pressure is still with us on friday. in fact, multiple areas of low pressure and weather fronts sweeping across the country. it won't be raining all the time. in fact, on friday, from the morning onwards, you can see that rain is quite showery out towards the west. also a spell of showery rain for the extreme south—east and also east anglia. there will be some sunny spells, so certainly not raining all the time.

temperatures every bit as mild, if not milder, 15 or even 16 celsius. still that colder air sitting in the north and the north—west of scotland, around 8 degrees or so. into the weekend, a very undulating pattern in ourjet stream. and when we see these big ridges in the jet stream, that means that milder air is still streaming in from the southern climes. and you can see that mild air engulfing many parts of western europe and even reaching central parts of europe as well. so the outlook into next week shows those temperatures into double figures, in fact, hovering around 1a, 15 degrees. but with that, a lot of cloud, outbreaks of rain, but sunny spells from time to time, too. bye— bye.

this is bbc news. we'll have the headlines and all the main news stories for you at the top of the hour, as newsday continues straight after hardtalk. welcome to hardtalk. i'm stephen sackur. ever since the failure of the so—called 0slo process to deliver a lasting israeli—palestinian peace, that conflict has been a matter of mutual recrimination and sporadic violence. but now the conditions seem ripe for something different, something worse. israel has the most far—right government in its history. palestinian disillusion with the status quo seems

to be stoking militancy.